Business Finance - Operations Management EXCEL ASSIGNMENTS, SUPPLY CHAIN MANAGEMENT

Question 1

										Net Profit	Plants			Capacity Configuration	Plant
										Products	1	2		Products	1	2	Demand
						Demand: A: 1000; B: 1000				A	7	10		A			1000
							Probability: 0.25			B	6	4		B			1000
										Profit:				Capacity	2000	2000
			Demand A: 1000
										Net Profit	Plants			Capacity Configuration	Plant
						Demand: A: 1000; B: 3000				Products	1	2		Products	1	2	Demand
							Probability: 0.25			A	7	10		A			1000
Overall Expected Profit:										B	6	4		B			3000
	Start									Profit:				Capacity	2000	2000
										Net Profit	Plants			Capacity Configuration	Plant
						Demand: A: 3000; B: 1000				Products	1	2		Products	1	2	Demand
							Probability: 0.25			A	7	10		A			3000
										B	6	4		B			1000
			Demand A: 3000							Profit:				Capacity	2000	2000
						Demand: A: 3000; B: 3000				Net Profit	Plants			Capacity Configuration	Plant
							Probability: 0.25			Products	1	2		Products	1	2	Demand
										A	7	10		A			3000
										B	6	4		B			3000
										Profit:				Capacity	2000	2000

Hint: Step 1: Under each demand scenario, try to figure out how much to produce for products A and B in Plants 1 and 2 in the gray area. The production plan you propose should maximize the profit under this demand scenario. Step 2: Calculate the corresponding profit given the production plan you proposed in the light blue area. Step 3: Calculate the overall expected profit that summarizing all the demand senarios. Report it in the light green area. Step 4: Answer the following questions in the textbox.

Question: Why the capacity at these plants is sometimes larger than the demand? Your answer:

Question 2

Question 2a: Your answer:

Question 2b: Your answer:

Question 2c: Your answer:

image1.png

image2.png

image3.png

image4.png